The goal of this study was to investigate the fermentation of a concentrated hydrolysate in a single chemostat with tangential flow microfiltration cell recycle. Using a kinetic model to account for the inhibitory effects of ethanol, acetic acid, HMF, and furfural, conditions that maximize the volumetric ethanol productivity for the S. cerevisiae D5A fermentation were predicted. The model predicts a productivity of 4.4 g/l/h at 95% cell recycling and 98% sugar utilization, a 5 fold improvement over low cell density batch fermentation. High cell density batch experiments demonstrate an increase in ethanol production rates, but also indicate that high cell densities may affect intrinsic kinetics and cell yields. A preliminary continuous run demonstrated successful operation for over 100 hours, reaching high steady state cell densities of over 27 g DW/l. Strategies investigated to achieve higher cell densities and productivities while maintaining cell viability and reducing membrane fouling will be discussed.